10.05 notes

Econ 274 of October 5, 2015

1. discussion of Corey’s Sancha blog post

a. rural!

b. Lewis dual-sector “labor surplus” model

2. discussion of Henry’s cigarette post

a. status aspects: neat photo of multitudinous brands

b. public health issues

i. great to follow up with public health blog post

c. in tension with revenue to government [push sales! light up to be … hmmm … Mr. Entrepreneur].

i. who has more power: ministry of finance or ministry of health?

ii. balance shifts as population urbanizes and ages

3. history of early PRC: founding in Beijing, Oct 1949

a. gradual consolidation through 1951: last of KMT didn’t flee to Taiwan until 1950

i. territory, especially south and west

ii. collect taxes ← → end hyperinflation

b. political mass campaigns

i. initial administration staffed by the old guard, especially in south: not trusted

Let a Hundred Flowers Bloom slogan of 1956 brought out opposition, who then mopped up in Anti-Rightist Campaign of 1957

ii. initial performance good, but expectations very high: push for more

c. movement → cooperatives and collectives and state ownership

i. KMT had nationalized many firms, others handed over to government from Japanese ownership by the USSR, who occupied Manuchuria at the end of WWII.

– so heavy industry largely in government hands without any need to do anything!

ii. poor agriculture [think Lewis!], collectives would save on capital and bring gains

iii. long history collectives and coops – Healthy Foods on Washington Street started out as a coop, ended up bankrupt: initial enthusiasm hard to maintain

– we’ll analyze why!!

d. jargon:

i. Great Leap Forward 1958-1961, agricultural collapse in which 30 million perished

ii. Great Proletarian Cultural Revolution, 1966-(1971)-1976 [when Mao died], helped Mao recover power. “Red Guards”

4. watch Heart of the Dragon video [located functioning links]